This article appeared in InsuranceNews.com.au
Insurers have cut their collection rates for the NSW emergency services levy across most premium lines.
Zurich’s rates on construction risk, marine, fire, industrial special risks insurance and consequential loss have fallen to 28% from 31%. Residential strata remains at 17.5% and motor stays at 1%.
The new rates took effect on May 23 in the latest adjustment for new business.
For SME renewals via the Z.streamXpress electronic broking system, the effective date of the changes is July 4.
Vero says its collection rates fell in January to 29% from 33% on all commercial lines.
CGU adjusts its rate from time to time but has not done so recently, a spokesman confirmed.
QBE says the company revises its rates quarterly. “When we last revised our rates in March, there was a decrease across all relevant policies,” a spokesman told insuranceNEWS.com.au.
More than 73% of funding for NSW emergency services comes from the levy on insurance companies, with the rest from state and local governments.
Victoria removed its fire services levy on insurance last July, leading insurers to reduce premiums.
Later last year the NSW Government deferred reform of its levy and appointed Victorian Fire Services Levy Monitor Allan Fels to report on that state’s transition.
Zurich says the rate reductions will not lower premiums, because levy rates are independent of premiums.